Delectable, Inc.'s unadjusted trial balance includes Accounts Receivable of $10,000, a credit balance in its Allowance for Doubtful Accounts of $50, and Sales Revenue of $100,000. Based on an aging of its receivables, management estimates that $1,000 of receivables will be uncollectible. Delectable's financial statements will show:
A. Bad Debt Expense of $950.
B. Allowance for Doubtful Accounts of $(950).
C. Bad Debt Expense of $1,000.
D. Allowance for Doubtful Accounts of $(1,050).
Answer: A
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